Title
Approving the third amendment to the wholesale water agreement with Windermere Utility Company providing extension of the City's sale of water to September 30, 2013 and authorizing the City Manager to execute same.
Summary
The City staff has been meeting with representatives of SouthWest Water Company since the interim agreement was signed on April 10, 2012. Within that agreement, the City agreed to "extend its existing wholesale water delivery contract with Windermere for at least 12 months from the effective date of this agreement under its existing terms." The existing terms were specified in the Second Amendment to Agreement for Wholesale Water Service Between the City of Pflugerville and SWWC Utilities, Inc., which is an attachment to this item. The term of the second amendment expires on September 30, 2012. The April 10, 2012 interim agreement mandated the extension of that agreement to April 10, 2013.
As staff continues to negotiate future actions involving the City of Pflugerville and Monarch regarding the Windermere water system, the question of minimum requirements for the extension of wholesale water service to April 2013 has been discussed. Using the current parameters as specified in the Second Amendment, the City requires a minimum payment of $325,000 annually which is included as revenue to the City's water utility. This minimum payment equates to the purchase of the amount of water equalling Windermere's share of the 10% that the City can sell-100,000,000 gallons of water. Discussions regarding the equitable distribution of that water between October 2012 and April 2013 resulted in a possible revenue loss to the City Utility Fund of as much as $243,100 during fiscal year 2013. The loss of that supply of water could also negatively impact our citizens in Windermere as SouthWest may have to obtain water from other sources.
Staff has not had time to create the document representing the third amendment. It will be identical to the ...
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